Xbox is placing a strong emphasis on delivering a next‑generation console that balances efficiency, affordability, and high performance, a strategic shift prompted by escalating hardware expenses and rapid developments in artificial intelligence. In a candid interview with the BBC, Xbox senior executive Asha Sharma highlighted the industry‑wide need to innovate around cost and power consumption, noting that such pressures are relatively new for the company.
"All of the industry needs to start to innovate on affordability and efficiency," Sharma said. "That is something that we have not had to do previously." She explained that the current "crisis" in the supply chain for chips, memory, and other critical components forces console makers to rethink how they design and price their products.
"With the crisis that's currently happening in hardware and components, it is absolutely something all of us need to be thinking about and innovating on and giving people more choice in terms of how they play their console and how they purchase their console," Sharma added. This perspective drives Xbox's roadmap for the upcoming platform, internally codenamed Project Helix. While Sharma declined to confirm whether Project Helix will retain a physical disc drive, she did discuss a new "disc‑to‑digital" feature that will allow owners of physical game discs to unlock a corresponding digital copy.
"I know players love physical media, and I know there's a lot of benefits in digital media, and I want to make sure people have a choice," she explained. "We've long pioneered backwards compatibility, and so you'll continue to see that as we go forward in the generations." The conversation then turned to artificial intelligence, a technology Sharma believes is fundamentally reshaping the gaming landscape.
As a former president of CoreAI at Microsoft, she emphasized that AI will be leveraged to enhance, not replace, the creative process. "The platform will take into consideration what's happening in the world and build the best experience for our players," she said, underscoring a commitment to using AI responsibly. For Project Helix, this means scrutinising hardware efficiency—how storage and memory are managed, the price per unit of components, and the overall sustainability of the design. Sharma has repeatedly warned against the dangers of low‑quality AI implementations, stating that Xbox has "no tolerance for bad AI" and will not sacrifice artistic integrity for short‑term gains.
"Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us," she asserted. This philosophy was echoed by Xbox chief content officer Matt Booty, who clarified that the Xbox team feels no pressure from Microsoft to adopt AI in ways that could compromise creative vision. "Our teams are free to use any technologies that might be beneficial, whether it's helping write code or check for bugs – things more in the production pipeline," Booty said.
"At the end of the day, as Asha said, we're committed to art made by people. Technology is only in support of that." In addition to product strategy, Sharma touched on recent organisational changes within Xbox.
The division has undergone a significant restructuring that included laying off roughly 3,200 employees—about 20% of the Xbox workforce—and divesting five internal studios. She framed these moves as necessary for long‑term sustainability, stating, "The restructuring was implemented to ensure we are here for the next 25 years and we're continuing to serve our purpose." Sharma acknowledged that the gaming market is evolving, with players seeking new ways to engage and with emerging technologies influencing how games are played. "We're in the middle of a new generation that wants to play in a different way, and new technology as well. Within Xbox, we haven't been healthy," she said, highlighting the need for a leaner, more adaptable organization.
Looking ahead, Xbox aims to deliver a console that offers multiple purchasing models—traditional retail, digital‑first, and hybrid options—so consumers can choose the approach that best fits their budget and preferences. By focusing on efficient hardware design, cost‑effective component sourcing, and thoughtful integration of AI tools, the company hopes to set a new standard for next‑gen consoles while preserving the artistic integrity that defines video games. In summary, Xbox's upcoming console will be built around three core pillars: affordability without sacrificing performance, responsible use of AI to augment development workflows, and a flexible ecosystem that respects both physical and digital media preferences.
These priorities reflect a broader industry trend toward sustainable, player‑centric design in an era of supply‑chain volatility and rapid technological change.